Try closing Windows Live, then disconnect from your internet, then re-install Live Plus. Connect back to your internet and sign-in. I had the same problem and this method fixed it ^^
O.P. RE: how come my username colours wont work T.T
haha thanks!
buh dw =) ai fixed it ^^"
actually my bro did...he right-clicked on me on my contact list and clicked, "edit nickname" and then it worked =D for some strange reason ==